Company Overview - Ying Tong Holdings is positioned as the "first stock in perfume" in the Hong Kong IPO market, with a current P/E ratio of 11, significantly lower than Sa Sa International's 22, indicating potential for valuation convergence due to the rapid growth of the Chinese perfume market and Ying Tong's leading position [1] - The company has established itself as the preferred partner for international brands entering the Greater China market, supported by a comprehensive distribution network covering over 8,000 sales points in more than 400 cities [1][2] - Ying Tong holds licenses for 72 internationally renowned perfume and beauty brands, including top luxury names like Hermès Beauty and Versace, with many brands entering into long-term agreements, including recent 10-year contracts [1] Financial Performance - For 2024, Ying Tong is projected to achieve a shareholder profit of HKD 227 million, maintaining a compound annual growth rate (CAGR) of over 14.5% over the past two years, outperforming international peers [2] - The company's gross margin has remained above 50% for the past three years, with net profit margins consistently leading the industry due to effective cost control [2] - The company is focusing on diversifying its sales strategy, with the revenue share from perfume business expected to decrease from 88.5% in 2023 to 80.9% by 2025, while skincare and cosmetics segments are growing rapidly, achieving a CAGR of 56.1% [2] Cash Flow and Dividend Policy - Ying Tong's cash flow is robust, with a net cash flow from operating activities reaching HKD 237 million by March 2025 and a cash balance of HKD 256 million at the end of the period [2] - The management has committed to a dividend payout ratio of no less than 50% in the future, with upcoming interim results expected to support dividend distribution [2] Industry Context - The Chinese perfume market is experiencing rapid growth, with Ying Tong offering over a thousand perfume SKUs that cater to various consumer segments, from budget to high-end [3] - The diverse fragrance designs and application scenarios enhance the company's competitive edge in the market, minimizing the impact of any brand exits on overall business performance [3]
被低估的“香水第一股“：挖掘颖通控股(06883)的价值重估逻辑